MANDATORY HEALTH INSURANCE
RISK-SHARING PLAN
619.10
619.10
Definitions. In this subchapter:
619.10(1)
(1) "Administering carrier" means the insurer designated under
s. 619.16.
619.10(1m)
(1m) "Alternative plan" means a health maintenance organization, as defined in
s. 609.01 (2), or a preferred provider plan, as defined in
s. 609.01 (4).
619.10(2)
(2) "Board" means the board of governors established under
s. 619.15.
619.10(3)
(3) "Eligible person" means a resident of this state who qualifies under
s. 619.12 whether or not the person is legally responsible for the payment of medical expenses incurred on the person's behalf.
619.10(3m)
(3m) "Health care coverage revenue" means any of the following:
619.10(3m)(b)
(b) Subscriber contract charges received for health care coverage.
619.10(3m)(c)
(c) Health maintenance organization, limited service health organization or preferred provider plan charges received for health care coverage.
619.10(3m)(d)
(d) The sum of benefits paid and administrative costs incurred for health care coverage under a medical reimbursement plan.
619.10(4)
(4) "Health insurance" means surgical, medical, hospital, major medical and other health service coverage provided on an expense-incurred basis and fixed indemnity policies. "Health insurance" does not include ancillary coverages such as income continuation, short-term, accident only, credit insurance, automobile medical payment coverage, coverage issued as a supplement to liability coverage, loss of time or accident benefits.
619.10(4m)
(4m) "HIV" means any strain of human immunodeficiency virus, which causes acquired immunodeficiency syndrome.
619.10(5)
(5) "Insurer" means any person or association of persons, including a health maintenance organization, limited service health organization or preferred provider plan offering or insuring health services on a prepaid basis, including, but not limited to, policies of health insurance issued by a currently licensed insurer, nonprofit hospital or medical service plans under
ch. 613, cooperative medical service plans under
s. 185.981, or other entity whose primary function is to provide diagnostic, therapeutic or preventive services to a defined population in return for a premium paid on a periodic basis. "Insurer" includes any person providing health services coverage for individuals on a self-insurance basis without the intervention of other entities, as well as any person providing health insurance coverage under a medical reimbursement plan to persons. "Insurer" does not include a plan under
ch. 613 which offers only dental care.
619.10(7)
(7) "Medicare" means coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 et seq., as amended.
619.10(8)
(8) "Plan" means the health care insurance plan established under this subchapter.
619.10(9)
(9) "Resident" means a person who has been legally domiciled in this state for a period of at least 30 days. For purposes of this subchapter, legal domicile is established by living in this state and obtaining a Wisconsin motor vehicle operator's license, registering to vote in Wisconsin or filing a Wisconsin income tax return. A child is legally domiciled in this state if the child lives in this state and if at least one of the child's parents or the child's guardian is legally domiciled in this state. A person with a developmental disability or another disability which prevents the person from obtaining a Wisconsin motor vehicle operator's license, registering to vote in Wisconsin, or filing a Wisconsin income tax return, is legally domiciled in this state by living in this state for 30 days.
619.11
619.11
Establishment of plan. The commissioner shall promulgate rules establishing a plan of health insurance coverage for an eligible person which satisfies the requirements of this chapter.
619.11 History
History: 1979 c. 313.
619.11 Annotation
Employe retirement income security act preempts any state law that relates to employe benefit plans. General Split Corp. v. Mitchell, 523 F Supp. 427 (1981).
619.12
619.12
Eligibility determination. 619.12(1)
(1) Except as provided in
subs. (1m) and
(2), the board or administering carrier shall certify as eligible a person who is covered by medicare because he or she is disabled under
42 USC 423, a person who submits evidence that he or she has tested positive for the presence of HIV, antigen or nonantigenic products of HIV or an antibody to HIV, and any person who receives and submits any of the following based wholly or partially on medical underwriting considerations within 9 months prior to making application for coverage by the plan:
619.12(1)(a)
(a) A notice of rejection of coverage from one or more insurers.
619.12(1)(am)
(am) A notice of cancellation of coverage from one or more insurers.
619.12(1)(b)
(b) A notice of reduction or limitation of coverage, including restrictive riders, from an insurer if the effect of the reduction or limitation is to substantially reduce coverage compared to the coverage available to a person considered a standard risk for the type of coverage provided by the plan.
619.12(1)(c)
(c) A notice of increase in premium exceeding the premium then in effect for the insured person by 50% or more, unless the increase applies to substantially all of the insurer's health insurance policies then in effect.
619.12(1)(d)
(d) A notice of premium for a policy not yet in effect from 2 or more insurers which exceeds the premium applicable to a person considered a standard risk by 50% or more for the types of coverage provided by the plan.
619.12(1m)
(1m) The board or administering carrier may not certify a person as eligible under circumstances requiring notice under
sub. (1) (a) to
(d) if the required notices were issued by one of the following:
619.12(1m)(a)
(a) An insurance intermediary who is not acting as an administrator, as defined in
s. 633.01.
619.12(1m)(b)
(b) The administering carrier, unless the notice was issued to a person who had applied for insurance coverage from the administering carrier.
619.12(2)(b)1.1. Except as provided in
subd. 2., no person who is covered under the plan and voluntarily terminates the coverage under the plan, is again eligible for coverage unless 12 months have elapsed since the person's latest voluntary termination of coverage under the plan.
619.12(2)(b)2.
2. Subdivision 1. does not apply to any person who terminates coverage under the plan because he or she is receiving, or is eligible to receive, medical assistance benefits.
619.12(2)(c)
(c) No person on whose behalf the plan has paid out $500,000 or more is eligible for coverage under the plan.
619.12(2)(d)
(d) No person who is 65 years of age or older is eligible for coverage under the plan.
619.12(2)(e)1.1. Except as provided in
subd. 2., no person who is eligible for health care benefits provided by an employer on a self-insured basis or through health insurance is eligible for coverage under the plan.
619.12(2)(e)2.
2. Subdivision 1. does not apply to a person who is eligible for health care benefits under the small employer health insurance plan under
subch. II of ch. 635 if all of the following apply:
619.12(2)(e)2.a.
a. The person is certified in writing by a physician licensed under
ch. 448 to have a severe and chronic or long-lasting physical or mental illness or disability.
619.12(2)(e)2.b.
b. The board determines that the coverage under the small employer health insurance plan under
subch. II of ch. 635 is not substantially equivalent to or greater than the coverage under the plan.
619.12(2)(e)2.c.
c. The board finds that the person is eligible for coverage under the plan after a review process, determined by the commissioner by rule under
s. 619.123, that evaluates and approves the certification by the physician that the person has a severe and chronic or long-lasting physical or mental illness or disability.
619.12(2)(e)3.
3. The requirements under
sub. (1) (a) to
(d) do not apply to a person who is found eligible for coverage under the plan by the board under
subd. 2.
619.12(3)(a)(a) Except as provided in
pars. (b) and
(c), no person is eligible for coverage under the plan for whom a premium, deductible or coinsurance amount is paid or reimbursed by a federal, state, county or municipal government or agency as of the first day of any term for which a premium amount is paid or reimbursed and as of the day after the last day of any term during which a deductible or coinsurance amount is paid or reimbursed.
619.12(3)(b)
(b) Persons for whom deductible or coinsurance amounts are paid or reimbursed under
ch. 47 for vocational rehabilitation, under
s. 49.68 for renal disease, under
s. 49.685 (8) for hemophilia, under
s. 49.683 for cystic fibrosis or under
s. 253.05 for maternal and child health services are not ineligible for coverage under the plan by reason of such payments or reimbursements.
619.12(3)(c)
(c) The commissioner, in consultation with the board, may promulgate rules specifying other deductible or coinsurance amounts that, if paid or reimbursed for persons, will not make the persons ineligible for coverage under the plan.
619.123
619.123
Rules for review of physician certification. The commissioner shall promulgate rules that establish the procedure to be used by the board under
s. 619.12 (2) (e) 2. c. The rules shall provide for an insurer that would be affected by the decision of the board to participate in the review process to contest or support the physician's certification.
619.123 History
History: 1991 a. 250.
619.125
619.125
Health insurance risk-sharing plan fund. There is created a health insurance risk-sharing plan fund, under the management of the board, to fund administrative expenses.
619.13
619.13
Participation of insurers. 619.13(1)(a)(a) Every insurer shall participate in the cost of administering the plan, except the commissioner may by rule exempt as a class those insurers whose share as determined under
par. (b) would be so minimal as to not exceed the estimated cost of levying the assessment.
619.13(1)(b)
(b) Except as provided by a rule promulgated under
s. 619.145 (4), every participating insurer shall share in the operating, administrative and subsidy expenses of the plan in proportion to the ratio of the insurer's total health care coverage revenue for residents of this state during the preceding calendar year to the aggregate health care coverage revenue of all participating insurers for residents of this state during the preceding calendar year, as determined by the commissioner.
619.13(1)(c)
(c) If assessments and other receipts by the commissioner, board or administering carrier exceed payments made to alternative plans in accordance with contracts entered into under
s. 619.145 (3) and the actual losses and administrative expenses of the plan, the excess shall be held at interest and used by the board to offset future losses or to reduce plan premiums. In this paragraph, "future losses" includes reserves for incurred but not reported claims.
619.13(1)(d)1.1. Each insurer's proportion of participation under
par. (b) shall be determined annually by the commissioner based on annual statements and other reports filed by the insurer with the commissioner.
619.13(1)(d)2.
2. If the commissioner finds that the commissioner's authority to require insurers to report under
chs. 600 to
646 and
655 is not adequate to permit the commissioner or the board to carry out the commissioner's or the board's responsibilities under this subchapter, the commissioner may promulgate rules requiring insurers to report the information necessary for the commissioner and the board to make the determinations required under this subchapter.
619.13(2)
(2) Any deficit incurred under the plan shall be recouped by assessments apportioned under
sub. (1) by the board among participating insurers, who may recover these amounts in the normal course of their respective businesses without time limitation.
619.135
619.135
Insurer assessments for premium and deductible reductions. 619.135(1)(a)(a) Whenever a person becomes eligible for and obtains coverage under the plan as a result of receiving a notice under
s. 619.12 (1) (am),
(b) or
(c), the commissioner shall levy an assessment of $1,750 against the insurer that issued the notice, except that the commissioner may not levy an assessment if the notice of cancellation under
s. 619.12 (1) (am) was issued on one of the permissible grounds under
s. 631.36 (2) (a).
619.135(1)(b)
(b) An insurer shall pay an assessment levied under
par. (a) within 30 days after receiving a notice of assessment.
619.135(1)(c)
(c) If an assessment levied under
par. (a) is not paid within the time prescribed, the commissioner shall impose a penalty against the insurer in an amount established by the commissioner by rule.
619.135(1)(d)
(d) All assessments and penalties collected under this subsection shall be credited to the appropriation under
s. 20.145 (7) (g).
619.135(2)
(2) If the moneys under
s. 20.145 (7) (a) and
(g) are insufficient to reimburse the plan for premium reductions under
s. 619.165 and deductible reductions under
s. 619.14 (5) (a), or the commissioner determines that the moneys under
s. 20.145 (7) (a) and
(g) will be insufficient to reimburse the plan for premium reductions under
s. 619.165 and deductible reductions under
s. 619.14 (5) (a), the commissioner shall, by rule, increase the amount of the assessment under
sub. (1) (a) or levy an assessment against every insurer, or a combination of both, sufficient to reimburse the plan for premium reductions under
s. 619.165 and deductible reductions under
s. 619.14 (5) (a).
619.135(3)
(3) In addition to the assessments under
subs. (1) (a) and
(2), the commissioner may, by rule, establish an assessment to be levied against each insurer that issues a notice of rejection under
s. 619.12 (1) (a) to a person who becomes eligible for and obtains coverage under the plan as a result of receiving the notice. Any assessments levied and collected under this subsection shall be credited to the appropriation under
s. 20.145 (7) (g).
619.135 History
History: 1991 a. 39.
619.14(1)(a)(a) The plan shall offer in an annually renewable policy the coverage specified in this section for each eligible person. If an eligible person is also eligible for medicare coverage, the plan shall not pay or reimburse any person for expenses paid for by medicare.
619.14(1)(b)
(b) If an individual terminates medical assistance coverage and applies for coverage under the plan within 45 days after the termination and is subsequently found to be eligible under
s. 619.12, the effective date of coverage for the eligible person under the plan shall be the date of termination of medical assistance coverage.
619.14(2)
(2) Major medical expense coverage. 619.14(2)(a)(a) The plan shall provide every eligible person who is not eligible for medicare with major medical expense coverage. Major medical expense coverage offered under the plan shall pay an eligible person's covered expenses, subject to
sub. (3) and deductible and coinsurance payments authorized under
sub. (5), up to a lifetime limit of $500,000 per covered individual. The maximum limit under this paragraph shall not be altered by the board, and no actuarially equivalent benefit may be substituted by the board.
619.14(2)(b)
(b) The plan shall provide an alternative policy for those persons eligible for medicare which reduces the benefits payable under
par. (a) by the amounts paid under medicare.
619.14(3)
(3) Covered expenses. Except as restricted by cost containment provisions under
s. 619.17 (4) and except as reduced by the board under
s. 619.15 (3) (e), covered expenses shall be the usual and customary charges for the services provided by persons licensed under
ch. 446. Except as restricted by cost containment provisions under
s. 619.17 (4) and except as reduced by the board under
s. 619.15 (3) (e), covered expenses shall also be the usual and customary charges for the following services and articles when prescribed by a physician licensed under
ch. 448 or in another state:
619.14(3)(b)
(b) Basic medical-surgical services, including both in-hospital and out-of-hospital medical and surgical services, diagnostic services, anesthesia services and consultation services, subject to the limitations in this subsection.
619.14(3)(c)1.1. Inpatient treatment in a hospital as defined in
s. 632.89 (1) (c) or in a medical facility in another state approved by the board, for up to 30 days' confinement per calendar year due to alcoholism or drug abuse and up to 60 days' confinement per calendar year for nervous and mental disorders.
619.14(3)(c)2.
2. Outpatient services as defined in
s. 632.89 (1) (e) for alcoholism, drug abuse or nervous and mental disorders, as follows:
619.14(3)(c)2.b.
b. An additional $2,500 of covered expenses per calendar year, after satisfaction of the deductible and coinsurance requirements under
sub. (5).
